Motor Vehicle Insurance Demystified

All vehicles driven on public roads in Zimbabwe are required by law to have some form of insurance. There is enough choice on the market these days to make it easy for anyone to find an insurance policy that suitably covers his or her vehicle. Whether the car is a classic or high performance one there will always be an insurance company ready and willing to sell an insurance policy for it. In general, though, the majority of people buy standard car insurance from one of the many insurance companies that offer it in Zimbabwe today but do they ever consider whether they will be getting their money’s worth? Zimnat Lion Insurance Company Limited would like to brief you on the insurance policies that it offers to assist you in making more informed decisions this renewal and an ensure that you get the best deal.

To begin with there are three main types of motor vehicle insurance policies that are routinely offered to the consumer: Third Party Only Insurance, Third Party Fire and Theft Insurance and Full Comprehensive Insurance. A simple explanation of the covers is given below.

Third Party Insurance

The minimum level of insurance which satisfies the requirements of the laws of Zimbabwe as defined by the Road Traffic Act is called Third Party Only Insurance. This statutory insurance is the most basic of the three options. Because of this, third party insurance is often motorists’ first choice as it allows them to fulfill their legal obligations on the road. Third Party Insurance will cover your liability for injury to others, damage to property, and liability whilst towing caravans and trailers. This insurance will not cover you for accidental damage to your car. Therefore if you have an accident you will have to meet the cost of repairing it yourself. You can, however, claim on the other person’s insurance policy if it is proved he/she was legally liable for the damage. If your car is new or you have a lot invested in it then it can be deemed a valuable asset. Third Party Insurance will rarely be sufficient to protect this asset. For example, if the car was stolen then Third Party Insurance would not cover the cost of replacing it, so in effect you would have lost every cent you had ploughed into it.

Third Party Fire and Theft Insurance

The basis of this cover is similar to Third Party Insurance but it has two very distinct advantages in that the insurance covers you for the loss of your car as a result of fire or theft. The rest of the cover is exactly the same as Third Party, so once again it remains a relatively cheap and popular option for those who own many cars some of which are garaged most of the time.

Full Comprehensive Insurance (Full Comp)

This is the most extensive of the three types of Car Insurance. It is the insurance with the most features and the broadest spectrum of cover. A full comprehensive policy not only insures you against damage to your car but will also meet the cost of repairing damage to other vehicles as well, regardless of who was at fault. Full comprehensive insurance will also cover you for everything in Full Third Party and Third Party Fire and Theft Policy. In addition you might find you are covered for additional costs which are related to loss or damage to your vehicle such as medical expenses for occupants of your vehicle and, legal expenses towing charges among others. These ‘extras’ are subject to limits which will be sated in your policy. Although these are not essential, they do give the policy holder the peace of mind in knowing they are covered for a multitude of eventualities on the road. For example, legal expense cover bought as an optional extra on a Full Comprehensive Insurance policy will pay any legal expenses that can arise from a accident with an uninsured car, although there are sometimes maximum amounts you cannot exceed in any one claim. Always read the small print very carefully on the policy as this upper limit will be quoted somewhere in there. Being wise to these limits and exclusions in your insurance policy could save you from a heartache in the future. Once you have decided whether it is third party or full comprehensive insurance you require then you need to consider the finer details of the policy. Insurance companies will offer the three basic types of insurance as standard, but when it comes to buying a policy you will normally be offered extras that may affect the price of your insurance premium.

Some of these are:

1. Legal Expense Cover

This will be included in the insurance ‘free of charge’ up to a certain limit and should you require the limit to be increased, this will be done and probably raise your premium to some extent.